Mamoru Yanase said crypto needs the same safeguards as financial institutions and banks.
Financial regulators in Japan have urged global regulators to treat crypto the same way as they do banking, calling for tougher rules for the sector.
According to the deputy director-general of the Financial Services Agency’s Strategy Development and Management Bureau, Mamoru Yanase, crypto needs to be controlled.
“If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions,” he said, according to a Jan. 17 Bloomberg report.
The comments from Japan’s financial watchdog come in the wake of the collapse of FTX in November, which rattled the industry and sparked urgency for regulatory action.
Unlike some of his U.S. counterparts, Yanase has acknowledged that the problem wasn’t with crypto. “What’s brought about the latest scandal isn’t crypto technology itself,” he said, adding that the blame lay with “loose governance, lax internal controls and the absence of regulation and supervision.”
He said that regulators in the U.S. and Europe have been urged to enforce the same rules for crypto exchanges as they do for banks and brokerages.
Source : [Japanese regulators want crypto treated like traditional banks](cointelegraph.com/news/japanese-regulators-want-crypto-treated-like-traditional-banks) by Cointelegraph By Martin Young - 23Cointelegraph.com News by Cointelegraph By Martin Young / January 17, 2023